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SummaryCompaniesUS slowdown risks deemed overblown by major finance firm CEOsExecutives highlight US investment appeal over Europe and Asia Oct 28 (Reuters) - The United States will continue to draw the vast majority of investment flows and the risks of a slowdown in the world's largest economy are overblown, the heads of major financial firms said at a conference in Saudi Arabia on Tuesday. U.S. stock markets have powered to record highs as huge sums of cash are plowed into the country to bet on AI, prompting some executives and central bankers to warn about the growing risks of a bubble and market correction. Advertisement · Scroll to continue Other investors worry about growing government debt under U.S. President Donald Trump and the impact of his trade tariffs. Still, executives at the Future Investment Initiative (FII) in Riyadh spent much of their time talking up prospects for the U.S., saying it compared favourably to Europe and parts of Asia. FUNDS RETURNING TO U.S. IN RECENT MONTHS, FINK SAYS The CEO of BlackRock (BLK.N), opens new tab, the world's largest asset manager, said money had been returning to the United States in the last two months in particular, reversing a move out of dollar-based assets earlier in the year. "Most global investors have a very large overweight in the U.S. and that's the place to have your overweight for the next 18 months," Larry Fink said. Advertisement · Scroll to continue The CEO of Goldman Sachs (GS.N), opens new tab, David Solomon, said the "vast majority of capital allocation" would be in dollar-based assets, and that there wasn't an obvious catalyst for an economic slowdown in the United States for the next 6-12 months. Blackstone (BX.N), opens new tab CEO Stephen Schwarzman said he was confident the U.S. and China would make significant progress on agreeing a trade deal, with Trump meeting the Chinese premier this week. Pershing Square Capital Management founder Bill Ackman played down concerns about U.S. government debt levels, noting the strength and scale of the government's assets while everyone focused on its liabilities. Ad Break Coming Up NEXT StayNext OffEnglish 180p288p360p480p540p576p720pHD1080pHDAuto (180p) About ConnatixV2122970584 About ConnatixV2122970584 Continue watchingafter the adVisit Advertiser websiteGO TO PAGE Reporting by Tom Sims in Frankfurt and Elizabeth Howcroft in Paris; Writing by Tommy Reggiori Wilkes; Editing by Bernadette Baum Purchase Licensing Rights Tom SimsThomson ReutersCovers German finance with a focus on big banks, insurance companies, regulation and financial crime, previous experience at the Wall Street Journal and New York Times in Europe and Asia.EmailXLinkedinElizabeth HowcroftThomson ReutersElizabeth Howcroft reports on finance and technology, including Europe's "fintech" industry and cryptocurrencies. She was part of the team which won a Loeb award and SABEW award for covering the collapse of crypto exchange FTX in 2022.EmailXLinkedin
